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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: shasta23 who wrote (7684)	1/9/1998 9:24:00 AM
From: Chris G.	Read Replies (2) \| Respond to of 12039

Hi Stefan, You and I have very similar thoughts and questions<g> I too have noticed the same on stochrsi14 on exits, but I tried adding many other indicators, one at a time of course, with always a worsening of results. I've figured this is what I'm going to do, in MSWIN you have the option of using either the 'inactivity' stop..where if the stock does nothing/trades sideways, you can sell at your 3-6wk. period if the price does not increase in this period. OR, use the 10% hard stop that protects you if the stock either crashes, or gradually decreases when the Stochrsi 14 fails to cross 70. I've not yet tested this out, but I"ve looked at all the charts I've tested very carefully looking at all indicators' values, and it looks like it will protect profits very well. The other question you asked the other day, as well as I awhile back, is setting up system tests using all the discussed indicators here on TA- Beg. I've tested out alot of charts using 'compare' w. just my simplest indicators, then with DAhl,OBV,and insych one at a time too. It always resulted w. a lengthing of time in trade, as well as decreased return. So I've decided to keep the syst. test simple, and when alerts arise w. "Buy" signals, then use the afore mentioned indicators to check that the trend is upward, and make my final decision to enter or not. This is how I plan to paper trade the next few months to see how it works out. The only danger I can see is it does add a bit of subjectivity to the decision process, but I see no better alternative....and I guess there is always going to be a bit of subjectivity no matter how well our systems are setup. Hope this makes sense, Chrisg